| 46. | Related parties |
Intra-group balances, and income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.
(a) Significant balances with the related parties as of December 31, 2016 and 2017 are as follows:
|
Related party |
Account |
2016 | 2017 | |||||||
|
Investments in associates: |
||||||||||
|
Aju Capital Co., Ltd. |
Trading assets | 49,990 | — | |||||||
|
” |
Loans | 210,000 | — | |||||||
|
” |
Credit card loans | 1,922 | — | |||||||
|
” |
Allowances | (627 | ) | — | ||||||
|
” |
Deposits | 692 | — | |||||||
|
” |
Provisions | 73 | — | |||||||
|
Pohang TechnoPark2PFV |
Deposits | 14,658 | — | |||||||
|
BNP Paribas Cardif Life Insurance |
Other assets | 112 | 9,868 | |||||||
|
” |
Credit card loans | 127 | 191 | |||||||
|
” |
Allowances | (1 | ) | (4 | ) | |||||
|
” |
Accrued expenses | 29 | — | |||||||
|
” |
Deposits | 353 | 446 | |||||||
|
” |
Provisions | 1 | 2 | |||||||
|
BNP Paribas Cardif General Insurance |
Credit card loans | 44 | 29 | |||||||
|
” |
Allowances | (1 | ) | (1 | ) | |||||
|
” |
Deposits | 13 | 221 | |||||||
|
Dream High Fund III |
Deposits | 1 | 3 | |||||||
|
Midas Dong-A Snowball Venture Fund |
Deposits | 427 | 220 | |||||||
|
IBKS-Shinhan Creative Economy New Technology Fund |
Accounts receivable | 12 | — | |||||||
|
” |
Deposits | 1,751 | 78 | |||||||
|
EQP Global Energy Infrastructure Private Equity Fund |
Deposits | 1 | — | |||||||
|
Shinhan Praxis K-Growth Global Private Equity Fund |
Other assets | 175 | 174 | |||||||
|
JAEYOUNG SOLUTEC CO., LTD. |
Loans | 14,356 | 14,847 | |||||||
|
” |
Credit card loans | 42 | 33 | |||||||
|
” |
Allowances | (70 | ) | (124 | ) | |||||
|
” |
Deposits | 7,638 | 2,659 | |||||||
|
” |
Provisions | 7 | 4 | |||||||
|
Partners 4th Growth Investment Fund |
Deposits | 2,160 | 2,076 | |||||||
|
SHBNPP Private Korea Equity Long-Short Professional Feeder |
Other assets | 175 | 97 | |||||||
|
Credian Healthcare Private Equity Fund II |
Deposits | 7 | 26 | |||||||
|
Midas Dong-A Snowball Venture Fund 2 |
Deposits | 242 | 239 | |||||||
|
IBKS-Shinhan Creative Economy New Technology Fund II |
Accounts receivable | 8 | — | |||||||
|
” |
Deposits | 179 | 76 | |||||||
|
PSA 1st Fintech Private Equity Fund |
Deposits | 525 | — | |||||||
|
SHBNPP Private Multi Strategy Professional Feeder No.1 |
Other assets | 43 | — | |||||||
|
Eum Private Equity Fund No.3 |
Deposits | 80 | 65 | |||||||
|
Related party |
Account |
2016 | 2017 | |||||||
|
Branbuil CO., LTD. |
Loans | 15 | — | |||||||
|
” |
Credit card loans | 3 | — | |||||||
|
” |
Allowances | (1 | ) | — | ||||||
|
” |
Deposits | 28 | 55 | |||||||
|
Semantic |
Credit card loans | 1 | — | |||||||
|
” |
Allowances | (1 | ) | — | ||||||
|
Albatross Growth Fund |
Accounts receivable | 326 | — | |||||||
|
Shinhan Global Healthcare Fund 1 |
Unearned revenue | — | 409 | |||||||
|
KTB Newlake Global Healthcare PEF |
Deposits | — | 465 | |||||||
|
” |
Provisions | — | 13 | |||||||
|
Shinhan Fintech New Technology Fund No.1 |
Unearned revenue | — | 123 | |||||||
|
Taihan Industrial System Co., Ltd. |
Deposits | — | 100 | |||||||
|
Incorporated association Finance Saving Information Center |
Deposits | — | 4 | |||||||
|
Key management personnel and their immediate relatives: |
Loans | 1,877 | 3,247 | |||||||
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|
|
|||||||
| Assets | 278,527 | 28,357 | ||||||||
| Liabilities | 28,865 | 7,284 | ||||||||
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| (b) | Transactions with the related parties for the years ended December 31, 2015, 2016 and 2017 are as follows: |
|
Related party |
Account |
2015 | 2016 | 2017 | ||||||||||
|
Investments in associates |
||||||||||||||
|
Aju Capital co., Ltd |
Interest income | 6,440 | 7,332 | — | ||||||||||
|
” |
Fees and commission income | 291 | 257 | — | ||||||||||
|
” |
Other operating income | 23 | — | — | ||||||||||
|
” |
Reversal of credit losses | 146 | — | — | ||||||||||
|
” |
Interest expense | (1 | ) | (2 | ) | — | ||||||||
|
” |
Fees and commission expense | (694 | ) | (302 | ) | — | ||||||||
|
” |
Other operating expenses | — | (18 | ) | — | |||||||||
|
” |
Provision for credit losses | — | (149 | ) | — | |||||||||
|
UAMCO., Ltd |
Interest income | 4 | — | — | ||||||||||
|
” |
Fees and commission income | 9 | — | — | ||||||||||
|
” |
Other operating income | 4 | — | — | ||||||||||
|
” |
Provision for credit losses | (32 | ) | — | — | |||||||||
|
Pohang TechnoPark2PFV |
Interest expense | (15 | ) | (15 | ) | — | ||||||||
|
BNP Paribas Cardif Life Insurance |
Fees and commission income | 1,994 | 4,265 | 4,631 | ||||||||||
|
” |
Provision for credit losses | (1 | ) | (1 | ) | (3 | ) | |||||||
|
” |
Non-operating expense | (847 | ) | — | — | |||||||||
|
” |
General and administrative expenses | (7 | ) | (9 | ) | (10 | ) | |||||||
|
Kukdong Engineering & Construction CO., LTD |
Interest income | 26 | — | — | ||||||||||
|
” |
Fees and commission income | 16 | — | — | ||||||||||
|
” |
Reversal of credit losses | 1 | — | — | ||||||||||
|
Related party |
Account |
2015 | 2016 | 2017 | ||||||||||
|
” |
Interest expense | (35 | ) | — | — | |||||||||
|
” |
Fees and commission expense | (3 | ) | — | — | |||||||||
|
” |
Other operating expenses | (15 | ) | — | — | |||||||||
|
BNP Paribas Cardif General Insurance |
Fees and commission income | 10 | 4 | 4 | ||||||||||
|
” |
Provision for credit losses | (1 | ) | (1 | ) | — | ||||||||
|
” |
Reversal of credit losses | — | — | 1 | ||||||||||
|
Shinhan K2 Secondary Fund |
Fees and commission income | 116 | 665 | — | ||||||||||
|
Dream High Fund III |
Interest expense | (5 | ) | — | — | |||||||||
|
Midas Dong-A Snowball Venture Fund |
Fees and commission income | 30 | 28 | 38 | ||||||||||
|
” |
Interest expense | (3 | ) | (4 | ) | (3 | ) | |||||||
|
SHC-EN Fund |
Fees and commission income | 54 | 149 | — | ||||||||||
|
SP New Technology Business investment Fund I |
Fees and commission income | 79 | 30 | 41 | ||||||||||
|
IBKS-Shinhan Creative Economy New Technology Fund |
Fees and commission income | 39 | 50 | 37 | ||||||||||
|
” |
Interest expense | (2 | ) | (1 | ) | (2 | ) | |||||||
|
SH Rental Service |
Interest expense | (1 | ) | — | — | |||||||||
|
SM New Technology Business Investment Fund I |
Fees and commission income | 96 | — | 55 | ||||||||||
|
JAEYOUNG SOLUTEC CO., LTD. |
Interest income | 616 | 671 | 654 | ||||||||||
|
” |
Fees and commission income | 1 | 1 | 1 | ||||||||||
|
” |
Other operating income | — | 7 | 3 | ||||||||||
|
” |
Reversal of credit losses | — | 89 | 1 | ||||||||||
|
” |
Interest expense | (47 | ) | (21 | ) | (4 | ) | |||||||
|
” |
Provision for credit losses | (160 | ) | — | (55 | ) | ||||||||
|
” |
Other operating expense | (15 | ) | — | — | |||||||||
|
Korea Investment Gong-pyeong Office Real Estate Investment Trust 2nd |
Fees and commission income | 21 | 55 | — | ||||||||||
|
The Asia Pacific Capital Fund II L.P. |
Fees and commission income | — | 175 | 85 | ||||||||||
|
Shinhan Praxis K-Growth Global Private Equity Fund |
Fees and commission income | 391 | 691 | 689 | ||||||||||
|
Partners 4th Growth Investment Fund |
Interest expense | (6 | ) | (2 | ) | (16 | ) | |||||||
|
Albatross Growth Fund |
Interest expense | — | (6 | ) | — | |||||||||
|
Shinhan-Albatross Growth Fund |
Fees and commission income | — | — | 152 | ||||||||||
|
” |
Interest expense | — | — | (21 | ) | |||||||||
|
PSA 1st Fintech Private Equity Fund |
Interest expense | — | (5 | ) | — | |||||||||
|
IBKS-Shinhan Creative Economy New Technology Fund II |
Fees and commission income | — | 22 | 25 | ||||||||||
|
Related party |
Account |
2015 | 2016 | 2017 | ||||||||||
|
Midas Dong-A Snowball Venture Fund 2 |
Interest expense | — | (1 | ) | — | |||||||||
|
SHBNPP Private Korea Equity Long-Short Professional Feeder |
Fees and commission income | 506 | 785 | 892 | ||||||||||
|
SHBNPP Private Multi Strategy Professional Feeder No.1 |
Fees and commission income | — | 160 | — | ||||||||||
|
Semantic |
Interest income | — | 15 | — | ||||||||||
|
” |
Provision for credit losses | — | (1 | ) | — | |||||||||
|
Branbuil CO., LTD. |
Fees and commission income | — | 1 | 2 | ||||||||||
|
” |
Provision for credit losses | — | (1 | ) | — | |||||||||
|
Treenkid |
Interest income | — | 3 | — | ||||||||||
|
STI New development Co, LTD |
Fees and commission income | — | — | 30 | ||||||||||
|
Shinhan Fintech New Technology Fund No.1 |
Fees and commission income | — | — | 30 | ||||||||||
|
KTB New lake medical Global Investment |
Interest income | — | — | 10 | ||||||||||
|
” |
Other operating income | — | — | (13 | ) | |||||||||
|
Shinhan Global Healthcare Fund 1 |
Fees and commission income | — | — | 282 | ||||||||||
|
Taihan Industrial System Co., Ltd. |
Fees and commission income | — | — | 2 | ||||||||||
|
Key management personnel and their immediate relatives |
| |||||||||||||
|
Interest income |
119 | 68 | 101 | |||||||||||
|
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|||||||||
| 9,142 | 14,984 | 7,639 | ||||||||||||
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The above outstanding balances and transactions have arose in the ordinary course of business and on substantially the same terms, including interest rates and security, as for comparable transactions with third-party counterparties.
| (c) | Key management personnel compensation |
Key management personnel compensation for the years ended December 31, 2015, 2016 and 2017 are as follows:
| 2015 | 2016 | 2017 | ||||||||||
|
Short-term employee benefits |
18,462 | 16,428 | 17,112 | |||||||||
|
Severance benefits |
393 | 418 | 979 | |||||||||
|
Share-based payment transactions |
6,318 | 9,162 | 6,787 | |||||||||
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|||||||
| 25,173 | 26,008 | 24,878 | ||||||||||
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| (d) | The guarantees provided between the related parties as of December 31, 2016 and 2017 were as follows: |
| Amount of guarantees | ||||||||||||
|
Guarantor |
Guaranteed Parties |
2016 | 2017 |
Account | ||||||||
|
Shinhan Bank |
Aju Capital Co., Ltd. | 50,000 | — | Unused credit line | ||||||||
| New lake alliance | — | 700 | Unused credit line | |||||||||
|
BNP Paribas Cardif Life Insurance |
10,000 | 10,000 | Unused credit line | |||||||||
|
Neoplux Technology Valuation Investment Fund |
12,000 | 6,000 | Security underwriting commitment | |||||||||
|
JAEYOUNG SOLUTEC CO., LTD. |
600 | 109 | Unused credit | |||||||||
| ” | 483 | 429 | Import letter of credit | |||||||||
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|||||||||
| 73,083 | 17,238 | |||||||||||
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| (e) | Details of collaterals provided by the related parties as of December 31, 2016 and 2017 were as follows: |
|
Provided to |
Provided by |
Pledged assets |
2016 | 2017 | ||||||||
|
Shinhan Bank |
Aju Capital Co., Ltd. |
Beneficiary certificate |
— | |||||||||
|
BNP Paribas Cardif Life Insurance |
Government bonds |
13,699 | 11,666 | |||||||||
| Treenkid | Properties | 200 | — | |||||||||
|
JAEYOUNG SOLUTEC CO., LTD. |
Properties | 20,814 | 20,814 | |||||||||
|
” |
Guarantee insurance policy | 7,037 | 7,037 | |||||||||
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|||||||||
| 201,750 | 39,517 | |||||||||||
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